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I don't understand what's the purpose and importance of provision of depreciation account, and why we make such account
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I don't understand what's the purpose and importance of provision of...
Provision For Depreciation:

This is an account head created in accounting system, to accumulate all the depreciation amount of various assets. Depreciation is an expense for any company, so this amount is not credited to asset account, instead this amount is transferred to provision for depreciation account. At the end of the year this amount is calculated as whole, and carried to next year, when assets are sold total depreciation and sold assets is transferred to credit side of asset account, following this practice its helps you to calculate correct profit and loss for every year.
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I don't understand what's the purpose and importance of provision of depreciation account, and why we make such account Related: Methods of Recording Depreciation
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I don't understand what's the purpose and importance of provision of depreciation account, and why we make such account Related: Methods of Recording Depreciation for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about I don't understand what's the purpose and importance of provision of depreciation account, and why we make such account Related: Methods of Recording Depreciation covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for I don't understand what's the purpose and importance of provision of depreciation account, and why we make such account Related: Methods of Recording Depreciation.
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